Package holiday company TUI has reported high demand for holidays and 1.5 million additional bookings for summer 2021 since May. As a result, TUI has reported a return to positive cashflow before financing of €320 million in its third financial quarter – positive again for the first time since the start of the pandemic.
TUI also reports successful refinancing measures, with loan maturities of €4.7 billion extended until summer 2024.
TUI CEO Fritz Joussen said: “Customer demand and booking momentum are high as soon as travel restrictions are withdrawn. The figures for the start of the summer business are encouraging. Germany and continental European markets show high demand. In England this will only be reflected in Q4. Business is coming back and TUI's transformation is clearly having an impact.”
TUI has successfully resumed business activities in all European markets. As soon as travel restrictions fall in the markets, TUI reports that booking momentum increases significantly.
TUI CEO Fritz Joussen: “Our business model and the strong TUI brand remain a successful model and are the guarantee for the successful restart. Customer demand and booking momentum remain high as soon as state travel restrictions are withdrawn. Where the state gives back normal entrepreneurial freedom, we are very successful – where states intervene and restrict entrepreneurial freedom, these interventions impact bookings. With one and a half million additional bookings since May and a total of more than four million bookings for the summer business, the figures are encouraging. Especially in Germany and in the continental European markets, the current booking figures show a high pent-up demand. In England, travel could only be resumed in mid-July. Demand and bookings there will therefore be reflected in the 4th quarter. Business is coming back and TUI's transformation is clearly having an impact.”
In the period under review, TUI generated revenue of €650 million and adjusted EBIT was negative €670 million.
In the reporting period, the Group implemented various refinancing measures to strengthen its capital structure. The previously successfully placed convertible bond was increased by €190 million. In May, the Group announced the sale of a real estate portfolio of 21 properties. At the end of July, TUI, 19 international banks and KfW agreed to extend the maturity of revolving credit facilities (RCF) totalling €4.7 billion until summer 2024. As of 9 August 2021, TUI had financial resources of €3.1 billion available – around €1.4 billion more than in May 2021.
TUI recorded a total of 4.2 million bookings for summer 2021. Average prices are nine per cent higher than for summer 2019 due to the high proportion of package holidays in current bookings. Capacity for the core months of the 2021 summer programme has been adjusted to 60 per cent of the 2019 summer programme.